Chapter 1 and 25 Flashcards

1
Q

Quality management

A

The act of overseeing all activities and tasks needed to maintain a desired level of excellence

focuses of long-term goals through the implementation of short-term initiatives

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2
Q

External triggers to change

A

Demographic characteristics
Technological advancements
Market changes
Social and political changes
Globalization
Customers
Competitors
Scarcity of resources
Faster production possibilities

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3
Q

Internal triggers to change

A

Size changes
HR problems and prospects
Demographic and social influences
New management concepts
Inefficient processes or unproductive activities
Growth in size and scope of activities
Reformulation of the corporate strategy
Organizational development

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4
Q

Sporadic quality problems

A

Sudden, adverse change in the status quo
Dramatic
Required remedy by restoring the status quo
Once-off problem
Attacked by the control process

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5
Q

Chronic quality problems

A

Long-standing adverse situation
Requires remedy by changing the status quo
Difficult to solve, accepted as inevitable
Continuous improvement addresses chronic problems, involving the whole organisation

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6
Q

Why should you assess quality performance

A

Understand the baseline of your culture, system, processes, people, and cost
Understand what needs to be changed or improved

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7
Q

Types of organisational assessments to assess (quality) performance

A
  1. Quality risk
  2. Cost of poor quality
  3. Performance and standing in the marketplace
  4. Assessing using national performance standards and awards
  5. Assessing to the international system standards
  6. Competitive benchmarking best practices
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8
Q

Quality risk assessment should include 3 things

A

APPROACH: What are the organisational approach, intent, and design used within the organisation?
DEPLOYMENT: How broadly has the approach been deployed/executed in the organisation?
RESULTS: What are the measurable outcomes that demonstrate the approach and deployment are valid?

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9
Q

Why should the assessment be organisation-wide?

A

Systems perspective
Internal and external customers
Avoid displacing problems
The whole is bigger than the sum of its parts
You’ll find the problem wherever you go looking for it

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10
Q

Organisation wide assessment elements

A

Cost of poor quality
Standing in the marketplace
Employee culture
Overall health of the operating and quality systems

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11
Q

Cost of poor quality

A

The annual monetary loss of products and processes that are not achieving their quality objectives
The cost of poorly performing processes

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12
Q

Purpose of calculating the Cost of Poor Quality

A

Quantifying the size of the quality problem in monetary value
Identify opportunities for cost reduction
Opportunities for reducing customer dissatisfaction and associated threats to product saleability can be identified
Provides a means of evaluating the progress of quality improvement initiatives
Supports the development of a strategic plan

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13
Q

Cost of poor quality comprises of …

A

Cost of nonconformities
Cost of inefficient processes
Cost of lost opportunities for sales revenue

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14
Q

Prevention costs

A

the cost incurred in the process to reduce potential defects and errors
- quality improvement costs
- quality training
- planning

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15
Q

Appraisal costs

A

the cost of determining the current quality of the production process or service (inspection costs)

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16
Q

Internal failure costs

A

the cost incurred when defects and errors are found before delivery to the customer

17
Q

External failure costs

A

the cost of trying to correct defects and errors after the product or service is delivered to the customer

18
Q

Hidden costs (of poor quality)

A

Lost sales
Process downtime
Extra inventory
Lost discounts
Damaged goods
Premium freight costs
Customer allowances
Overtime to correct orders
Loss of goodwill
Paperwork errors
Obsolete inventory
Incorrect orders shipped
Extra process capacity

19
Q

Optimum cost of quality

A

To determine whether quality improvement has reached the economic limit:
Compare the benefits possible from specific projects with the costs involved in achieving these benefits
When no justifiable project can be found, the optimum is reached

20
Q

Importance of good quality

A

Leads to:
Higher customer satisfaction
Increased sales volume
Company’s reputation
Product liability
Market gains
Higher price
Reduced costs
Higher productivity
Lower rework/scrap

21
Q

Consequences of poor quality

A

Loss of business
- customer won’t busy the product or any other product again

Loss of reputation
- Customers complain about their bad experience to friends and relatives

Higher costs
- Poor quality costs money and reduces profitability (cost of poor quality)